Tri-Agencies Release Final Rules on Short-Term, Limited-Duration Insurance

On March 28, 2024, the Departments of Health and Human Services (HHS), Labor, and the Treasury released final regulations that now limit the duration of short-term limited duration insurance (STLDI) policies to no more than three months (with extensions or renewals, the maximum coverage period can be no more than four months). Under the previously applicable Trump-era rule, the maximum initial term could be as long as 12 months with a total coverage period of up to 36 months with extensions or renewals. The final rules also contain new notice requirements, so that a clear and concise notice must be placed on the front page of each policy. STLDI policies are not subject to certain ACA protections, including prohibitions on discrimination based on health status, pre-existing condition exclusions or dollar limits on certain essential health benefits. For more information on STLDI policies, visit Tax Facts Online. : Q 483. Note: Q is updated.